‘Quid pro quo’
‘Speculate to accumulate’
‘No such thing as a free lunch’
These are all phrases used in business both internally and externally. All accept that money must be paid for a product whether it be tangible (hardware/ software) or in-tangible (services, support, consultation etc).
While the intangible often brings more value than the price when you work with the right partner (managed service agreements are a great example of this), the tangible will depreciate over time.
Customer ‘X’ needed to release funds for software to enable them to migrate from on premise to a ‘remote first’ strategy. Their assets were furloughed using eacsRevo, and the cash released. This avoided upfront costs of the software to be spread over three years while fully realising the benefits of change.
The value that businesses derives from hardware and software investment is taken into account when the investment is made, in the current situation this value in some part is not being realised and the assets are depreciating without adding value. When an asset depreciates far enough we’ve heard our clients use the term ‘Dead money’. They see this item as being something that was paid for, has run it’s course and now needs to be decommissioned or retired, never to be of use again. This lack of value doesn’t have to be the case.
In the current global situation assets depreciate which may not have been fully utilised or indeed delivered any business value following significant investment in the previous year. However, this ‘dead money’ can still be of use.
With eacsRevo you are able to release the equity in your hardware and software by selling the asset(s) to eacs’ partner econocom and pay back the capital amount over an agreed period of time. We have already seen this put in use as COVID19 took hold and customers that were no longer on-premise wanted to release capital from the kit that was not being used on-site.
Customer ‘Y’ refitted their audio-visual systems across the entire campus in 2019. Now few of these facilities are used (<25%) they have been able to ‘furlough’ these new assets and get cash in the bank for use on more valuable initiatives.
Along with allowing cash to be instantly available you are also able to defer repayments by up to 3 months, helping you navigate these immediately uncertain times with increased capital and reduced (initial) outgoings.
There is not one organisation that has avoided being affected by COVID. Releasing cash now, that was previously spent, can help stabilise your organisation in the short term and build for the long term.